business that i think is going to boost the earnings up. i think it can take out the old high of 17.50. >> co energy. >> grasso. >> crk. without the headline risk of a chk. >> have a great weekend. power begins now. thank you very much, scotty. appreciate it. "power lunch" kicks things off with gdp. it comes in below estimates. ty's going to show us how to play that in a minute. but first, deutsche bank's joe joining us. >> silver lining, sue, a lot of weakness in defense. it's completely at odds with what the department of treasury said we spent last quarter. number two, private sales to domestic final purchases, which is gdp excludeing inventories, excludeing government and exports, that's the running at 2.7 slightly below what we saw. it's not great. it's okay. so it's sort of like a muddle

through things are getting better, just not that strong. >> on the other hand consumer spending was stronger. people are buying bigger ticket items. >> you're right. consumer spending was stronger, sue. it would have been over 3% if not for the weather because those warm temperatures caused housing consumption of services, utility bills to fall, that was probably equal if not greater than any boost housing might have gotten because of the weather. >> you're still optimistic. >> very much optimistic. >> thanks, joe. appreciate it very much. there you have it, ty, back to you. >> thank you, sue. good afternoon everybody. if there's a slowdown, you can't tell by looking at visa, mastercard, estee lauder, vf corp., does anybody not own a jacket? s&p consume ir discretionary sector as well. smart ways to invest in a 2%

growth economy. steve weiss joins us now. the 2% -- it's like reduced fat milk, steve. >> it is. it is. >> how do i make money? >> well, you have to go with the winners. that's the first thing. you have to go where value is. when you look at coke versus pepsi, use that as an example. coke had a great quarter. selling about 20 times earnings. pepsi not so great at 16. that's down. coke is hitting another new high. so you go with your winners with solid brand names. stay at the high end of retail also. that's nordstrom and macy's, a great operator. stay away from the low end. >> stay away and go with consumer names that people -- whose products people want to buy? >> yes. but be careful. in a week from today you have a jobs number. that could take down the consumer stocks and give you another opportunity. >> are there any areas that leap out to you in this 2% economy that have been basically undiscovered that are sleepers to you? >> you know, it's such an

amazing market. there are no sleepers. either they're killed in their sleep because they take -- >> stay asleep. >> stay asleep and take down 10% or 15% in the smallest miss. starbucks hardly undiscovered. i was hoping the stock would get crushed because i don't own it and i wanted to buy it. this is not a crushing. i would like it to soften a little more. if it holds here,ly buy it. buy stocks dislocated momentarily. be prepared to pay up for growth. >> that's what you have to do in a 2% economy growth really matters. >> growth matters. >> steve, thank you very much. back to you in about 15 minutes with how to invest in energy in this 2% growth environment. shares of ford down at this hour. that is despite big quarterly numbers speeding past wall street estimates. phil lebeau is live in chicago. phil. >> tyler, this is a tale of two earnings for ford. overall, yes, they beat the street earning $2.3 billion. 39 cents a share. 4 cents better than expected.

the numbers from north america very impressive. $2.1 billion earned last quarter. best since 2000 in the profit margins they're getting a lot of attention as well. a robust 11.5%. look at shares of ford and the reason they're trading lower today, ford posted a loss of $149 million in europe. the forecast is not very optimistic either. here's what the ceo had to tell us about 45 minutes ago. >> europe tough situation, but we're dealing with it. we actually managed our cost reduction even better than what we thought. and asia pacific we're on plan investing in that growth area. >> one other thing that is worth keeping in mind, take a look at shares of ford versus the dow over the last year with ford shares down 24%, sue and tyler, when you look at ford right now and look at where the analysts see the stock, they all say the same thing. nice performance, but will they run into some headwinds especially pricing in north america in the second half of this year? that's also weighing on shares today.

guys, back to you. >> that makes a lot of sense. thanks, phil. couple earnings, chevron topping estimates. profits were up 4%. and that comes despite a drop in oil production. merck also beating estimates earning 99 cents a share. profit jumping more than 65% from a year ago. we'll see whether or not they come off of those best levels of the trading day. ty, back to you. >> we're keeping an eye on the business software maker, intuit, after it announced a major acquisition today. let's look at the shares of intuit up to the minute as we don't have that chart right now. but we do have jon fortt because he's here to tell us what's going on with intuit. >> yeah. i just got off the phone a few minutes ago, tyler, with intuit's ceo brad smith. this is intuit's third biggest

purchase ever biggest outside financial services and who knows, it might do the trick in shifting into its reputation from being the turbo tax company to more like the salesforce.com closer to where smith tells me he's taking the company. demand force had more than 16 quarters of 80% growth. it does cloud software for small business marketing front office stuff. when you consider quickbooks is already the major provider of the office, this could be an interesting combo if smith executes. he said it will add one or two points of revenue growth in 2013, tyler. >> let's talk a little about samsung. their earnings out today. i just bought one of their phones. they're not making apple nervous, are they? or are they? >> i would say that they are, tyler. it's interesting. steve jobs in 2010 called out samsung as being a major competitor that wanted to eat apple's lunch. there are these lawsuits going back and forth between apple and

samsung in tablets and smartphones. at the same time samsung is manufacturing apple's custom chip for the iphone and ipad because -- >> so they're frenemies. sue. >> ty torks washington and a growing heated debate about what to do about the out of control student debt crisis. student debt topped $1 trillion earlier this week. today the house voting to extend a plan to stop interest rates on student loans by doubling this summer. all of that comes at quite a cost. john harwood is at the white house with details. >> sue, we've taken a step toward the resolution of that crisis, but we have a ways to go yet. it was a demonstration of exactly how president obama, mitt romney and their two parties are going to move to the center and agree on some things but still disagree and fire up their bases. president obama was out campaigning for a preservation of the cut rate student loans. mitt romney said i'm for keeping

the student interest rates low as well, but not specifying how to pay for it. so the republicans came up with a plan to take the money out of obama care. democrats countered and said, no, we're going to take the money from oil and gas companies. that's where it sits right now. the house has passed their bill on a near party line vote. the president says he's going to veto it. expect continued negotiations before this ultimately gets worked out. it will get worked out, but we're going to see this on other issues as well, sue. >> thank you so much, john. appreciate it. goldman sachs' ceo lloyd blankfein on cnbc earlier this week saying his firm has not done a good job of dealing with public image. his job just got tougher. new investigations underway into insider trading at the firm. and mary thompson is on the case. >> sue, cnbc confirming that federal prosecutors in los angeles are investigating goldman sachs' banker as part of the world's biggest insider trading probe. the fed's exploring whether the 37-year-old gave inside information about two health

care deals to a former trader, rajartnam, who is now serving a sentence for insider trading, the biggest conviction so far in this ongoing probe. in a statement goldman says it's known for the allegations for two years and cooperated with authorities. whom a person close to the firm haven't contacted goldman in a year about this matter. as for the san francisco based banker, he still works at goldman and according to his lawyer has done nothing wrong. he is the fourth person with goldman ties linked to this investigation though. analyst henry king and david loeb also reportedly under scrutiny by the feds. a goldman spokesman writing in an e-mail to cnbc though he could not answer whether king and loeb are still employed at the firm at this time. now, earlier this week the attorney for former goldman attorney ra jat gupta and another was being investigated. gupta is accused of sharing

information with goldman with raj rat nam. the feds have focused on the wrong man when it comes to inside information from being leaked from goldman. obviously it was to his advantage to kind of hint at that unidentified leaker at the hearing the other day, sue. back to you. >> indeed, thank you very much, mary. the investigation meanwhile into walmart's dealings in mexico is expanding including a threat to look at every permit walmart was issued. our michelle caruso-cabrera has traveled from mexico to bentonville, arkansas, which is walmart's home base. over to you, michelle. >> hey, thanks very much, sue. we are in front of the very original, very first walmart. of course it wasn't called walmart. it was called walton's 5-10 named after the founder. this is the seed that grew into an enormous global empire of retailing. the biggest retail in the world. right now that retailer is facing serious allegations about potential bribery south of the border more than 1,000 miles

away in mexico. this morning standard & poors came out and supported the share saying we believe the market has overestimated the long-term economic impact on walmart from fines, legal costs and slower growth as a result of alleged violations. you can see how they gapped open both of them on monday morning over a one-week period shares of walmart lower by 5.5%. and shares of walmex lower by more than 11%. walmart has a large majority ownership stake in walmex. they expect headlines to dissipate and shares should be able to outperform. headline risk at this point is not dissipating. more and more they're covering it in mexico. we can show you a couple front pages here from major mexican newspapers. they are covering it and more investigations going on in mexico. and, tyler, for everybody under the age of 30, a 5-10 was a five

and dime because back then you could buy things for five cents and ten cents. back to you. >> i remember it well. thank you very much, michelle. to brian shactman now for a market flash. >> thank you, tyler. omega flex released earnings midday here. 39 cents versus a year ago 8 cent revenue much better as well. a small cap industrial equipment company, they make metal hoess et cetera and you see that "power lunch" pop 3% to the upside. they were in negative territory. >> i like that. spain getting caught yesterday. european bank numbers not good, not at all. gdp in the u.s. weaker than expected. of course last summer all of these factors led to a lot of problems on wall street. are we about now to see a summer sequel? bob pisani, steve weiss, is it safe to stay in the water, bob,

we go back to your view. >> things are different this time, tyler. believe me, they're looking at things differently. if the broad hits the fan, you can bet mr. draghi is going to initiate another round of ltro. if they don't get any structural reforms, but i bet they do, i think things will be a little more calm this summer. >> here's the deal. to bob's point we won't have the crisis we had last year. however, i think it will be tough. i'll add china to that mix. china's slowing and slowing more than people think is going to keep pressure on the markets during the summer. >> i agree with that, steve. let me add two other points why we might not have the big crisis this summer. number two, qe-3 is definitely back on the table. we saw that this morning. disappointing gdp numbers and gold goes up $10 immediately. good heavens, the markets up on

a day they shouldn't be. and real estate's back in a big way. >> i agree with you. ivy snyder on "fast money" she changed her target up 1% in prices versus down 1%. the other interesting thing is draghi came out and said inflation's not really that big a problem. to me that's a signal that he's getting ready again to do an ltro or some other letters tyler threw out. but he's going to ease, no doubt about it. >> sue, down to you. >> thank you very much, ty. i don't know whether you were a able to see this this morning. some of us at cnbc did. the space shuttle enterprise flying high again today. it was on the back of a specially equipped jumbo jet. the retired shuttle had been at a special hangar belonging to the smithsonian in washington. but it will be on display in our backyard on the uss intrepid docked on the west side of manhattan. up next, the twins, the guys who said they started facebook

and then got gypped? they're striking back. we'll hear from them. and coming up, the iconic painting, the scream, about to go on auction. "power lunch" is giving you the exclusive access to the work of art today ahead of many of the people that were ultimately bid on it. we're back in two minutes.

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♪ the winklevi twins. they do commercials for nuts now. the olympic rowers. they claim to be the real inventors of facebook. the brothers were on "squawk box" this morning talking about the future of facebook, a company they now own a stake in thanks to a settlement with mark zuckerberg. >> it looks like the interest is extremely strong. it looks like it's going to be a strong offering. >> does a hundred billion valuation make sense to you. >> valuation is what people are willing to pay, right? so at this point in time it looks like there's a ton of interest. i wouldn't be surprise first-degree it went off somewhere there. >> facebook's done a great job in social networking. no social network has given enough value proposition to leave facebook. >> i mean, that's the issue with google plus. they created another social

network and there wasn't really an innovation beyond sort of -- i mean, it became clear that facebook was doing a pretty good job because -- >> people don't need two social networks. >> well, with the potential for facebook to be worth more than $100 billion or a little less than the cash on hand at apple, the performance of other tech ipos recently could give investors reason for concern. zynga reporting a net loss for its first quarter on thursday. its shares now trading below its $10 issue price. groupon also trading below its issue price of $20 a share. so what does this mean for the future of facebook? jon fortt is back. and we're joined also by john carney, cnbc.com net-net senior editor. gentlemen, there's something in these internet ipos -- let me call them that though they really aren't in some ways, reminds me of 1999-2000.

am i way off base on that? >> i got to say, don't forget about yelp, which isn't doing that badly. and don't forget about jive software. the sort of enterprise social networking player that's actually up nearly double from its offer price. those are important to consider too. >> you can pick the good ones, you can pick the bad ones. are these good business? that was the issue back then. there were these companies that had big valuations that weren't really producing any profit. >> i think these are good businesses, but whether they're good investments at the ipo is a good question. i've warned people about this zynga. maybe if you're a cautious investor, sit around and wait to see how the company's performed. they're going public before they have a lot of performance results. you can wait. >> i'm going to put you on the spot. let's say facebook comes out at you name your price. will it trade higher than it's offering price one year from that date or lower? >> i'm going to say it will trade lower than its offering price one year from then. >> jon.

>> i'm going to say it's probably going to be about even a year from then with a lot of ups and downs in between. >> gentlemen, thank you very much. we appreciate it. and we're going to get you into sotherby's before anybody else does. possibly paying up to $80 million. that's coming up. we're also counting you down to the final metals close of the week. eight minutes and 51 seconds away from the metals close. "power lunch" coming right back.

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welcome back. as you know, this hour we've been talking about how to get some yield in your portfolio playing a 2% growth rate. as we bump along the bottom in this economic recovery, we're focusing now on energy. stephen weiss is back with us. i know you think a lot of the globe is indeed slowing. given that case, how would you play the energy sector in particular? >> i would stay away from most of it because it is slowing. you still have inflated prices because of geopolitical problems. i like a company hk, they'll do what they've done before is acquire them all and sell the entire company. he did it with another brought in $60 million sold $13 billion to hp. same thing will happen here. >> yesterday you mentioned the fact we were talking about some

of the big integrated oil companies. >> right. >> and people were buying those oil companies based on production -- they were buying it for the wrong reasons, basically. can you elaborate on that? i think a lot of people think of playing energy that way rather than what you just suggested. >> yeah. absolutely. what happens is people take a look at what the price of the commodity is, what the price of crude is and say that's going to reflect into the earnings of the company directly, i'm going to buy it. but that's not it. there's a lot more to running a company. there are hedges. there's another way to play it, buy a big cap company, maybe chevr chevron, with a 5% yield. >> got to leave it there. brian shactman over to you with a stock flash. >> we have shares of vivus halted. they got fda approval on stendra, what appears to be a branded name. they were seeking approval for the treatment of erectile dysfunction. we know that that's a major -- i hate to do it with a straight face but a huge business, guys. that stock has halted.

we'll keep you updated in terms of the movement and when it reopens. you saw up 4.5% when it was stopped. back to you, tyler. >> thank you. edvard munch masterpiece goes on sale next week at sotherby's. we're going to get a special look today. the auction house slapped its highest ever estimate on the picture, $80 million. there's buzz it could even shatter world auction records. here's a look at sotherby's other five topmost expensive works ever sold. sold back in may of 1990 for $76 million -- if i get out of the way you can actually see it. how about that. number four, francis bacon strip district 1976 which fetched about $88.2 million back in 2008. one, two, three. that's not bacon. that looks like a turkey. and number three, pablo picaso

painted in 1981 sold in 2006 for $95 million the double original estimate. another picaso in second place boy with a pipe sold in may for $104.1 million. the most expensive piece of art ever sold by sotherby's, alberto's walking man sculpture. it got $104.3 million february 2010 in london easily smashing -- but not this -- it was not smashed. smashing the $19 to $28 million estimate. about five times that estimate, sue. >> you know what, ty, that's the case for hard assets. another hard asset of course is the gold market. and the metals markets are closing in just a short while. we're going to take you live to the trading floor. gold's had an amazing week this week. and of course don't forget the screen. we will show it to you live on "power lunch" when we come back.

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you know, it has been a phenomenal week for gold. as a matter of fact, it's on track for its biggest weekly gain since february, believe it or not. prices are beginning to close right now. and sharon epperson's been tracking the action over at the nymex. i'm sure the downgrade by spain of course today, sharon, all of that and the turmoil in europe tying into the move in gold, i would assume. >> that's played into it, but a lot has to do with the move and the fed trying to read the two different viewpoints of the fed, sue. initially when there was no qe-3 in the statement wednesday afternoon, we saw gold prices drop to 1625, slightly below that and we've rallied about $40 since then because bernanke's talking about additional tools that may be used. this is how price is. but technically in the last month we've seen test the level

four times and technically speaking, we can look for gold prices now that we're at the 1665 level. >> right, exactly. >> that's what they're looking at. and, sue, also i want to look at a copper chart versus what we're seeing in the precious metals because that tells the story of today's data and the fact that when you look behind that headline on gdp, look at personal consumption, that is something that's stronger and more bullish than expected. and copper's really had a great week. >> yeah, copper has had an amazing week. somewhat overlooked with everything that's been going on. thanks, sharon. >> sure. >> bob pisani, you were commenting -- >> put it back up. the minute mr. bernanke opened his mouth at 2:00, we stood by ready to help if anybody needs it down the road, didn't say why, gold's been up, went up at 8:30. there's your qe-3 influencing not just the stock market but influencing the commodity

markets as well. >> does that change the scenario of sell in may and go away? >> the prospects of the fed sitting out here say fg things start slipping dramatically, we're not going to tell you when or if we're going to do it but we're here definitely is an influence on the stock market. the other thing i think is important is real estate's back. my old beat. i love it. when you see bidding wars on the cover of "the wall street journal" today, when you see home building stocks, look at this new highs, multi-year highs in home building stocks, these guys are taking a bigger share of the markets. spring selling season's been better even though the overall pie isn't growing. >> some of these are building new homes, starting new construction. >> all new construction for these guys. and look at real estate investment trusts. these are new highs for a number of group. simon property andalman centers, who would have thought commercial shopping malls, high quality ones would be back? they had great numbers here. take a look at them.

rents are going up. not down. >> bob, thank you. see you a little later. amazon one of the biggest winners on the nasdaq. and all script one of the biggest losers. seema mody is tracking both sides of that story for us. >> hi. you know we've seen so much strength in technology, apple on wednesday and amazon on fire today. we know the story there. media revenue's up 19%. a strong quarterly report. now, within technology though we're seeing some weakness from our hard disk drive makers. western digital a dominant player in the space reported better than expected earnings last night. pointed to weaker pricing from the levels in march. the company said expenses would rise sequentially and dent its profitability. seagate moving in sympathy to that news. also to the downside all scripts lowered its guidance, ousted its chairman and three board resignations. sue, back to you. >> thank you very much, seema.

let's find out how the bond market's taking a weak read on the economy and how they're positioning for the weekend. rick santelli's at the cme. >> hi, sue. if you look at a 24-hour chart of 10-year note yields, at 2:00 in the morning we're under a 1.90 yield. we haven't closed under 1.90 since the first few days of february. the data even though we're higher in yield, the soft gdp da da ta seems to be more of a balancing act. we're unchanged on the day in 10s and a couple basis points down on the week mostly due to weaker data. if you look at a dollar index on a 24-hour chart, you can see it's clearly lower. even though ben bernanke might not have wanted to send the qe message, bob's right. that's the reason it's down. it's battling. the japanese are actively doing more qe and yet they're rallying against the dollar f. you look at the pound, they're in recession and doing better against the dollar. sue, back to you. >> thank you, rick. we've heard from our reporters.

let's hear from the traders themselves on the floor where they're moving their money heading into the weekend and ahead of a very big week and the earnings and the economy. time for the trader triple play. ben willis, jeff the killer kilburg. ben, i'm going to start with you. bob made the case that qe-3 is looming out there and that's dpoing to support stocks perhaps going into the next few weeks. do you agree? >> what a great tool for the tool box. for someone just to be able to say something and move a market and not have to put any money behind it, it's a benefit for the u.s. taxpayer, but the fact of the matter is the jawboning is a great tool for the fed. i think it did put a little bit of a bid below this market going into the end of the month. i don't know if that's going to hold after the first of may. you'll see a little more fund flows in the first day of the month. >> right. >> sell in may and go away, i think as you said earlier, probably comes into play. >> jeff, what does it do to yields? now that we have the fed statement out of the way, the fed news conference out of the way and we've seen yields move to the downside this week?

>> you're going to see yields continue to go lower as the safe haven trade has become popular. specifically the german bund. as you stand we're seeing this qe-3 carrot continue to get dangled. the sentiment and pits behind those is not so much pessimism, it's more uncertainty. next week the paramount issue is the jobs number, sue. >> all right. let's talk about crude oil and where the energy complex goes. and we go now to the nymex and alan harry. what's your best guess? >> thank you for having me. right now i'm bullish on crude oil. we get to see into the 108-110 level. the price action is a little below 105. so i think we have to get down to below 103 to see lower levels. >> thank you, gentlemen. have a great weekend. ty, over to you. >> sue, the u.s. economy losing steam. gdp growth coming in on its first estimate at 2.2%. that was less than expected. and all hour today on "power lunch" we're trying to show you the smart way to invest in this

2% economy. who better to do it than steve weiss back with us with some dividend plays. you've got two choices. tell me about them. >> two. colony capital. a mortgage rate, real estate pricing getting better, it's an 8% yield. tom is one of the top real estate investors in the world. verizon, verizon had a great quarter. over 5% yield. tremendous story in my view because you know the company's going to be solid. very little play in their earnings. both are really worth owning. >> you get 5% in a stock just to sit there. >> just to sit and wait. with the 10-year giving you less than 2%. an easy trade. >> thanks very much. earnings, economy, ford and new driver of millionaires after last night's nfl draft. that's all in our power run down today. plus, your exclusive look at what many say will bring in at least $80 million. there it is live. "the scream" only on "power lunch." coming up.

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when you heard all about investing and consumer stocks for a 2% economy earlier on "power lunch." coming up next on "street signs," the 2% investing solution in pharma and medical devices. plus, dell went early in our stock draft yesterday with a really bold call for a big year ahead. we're going to debate that. and why nobody picked a hot stock in the race with apple and google to 1,000. we're going to go big, real big, and then we're going small, small cap that is. all tech but in three different businesses. are they right for your portfolio? we're going to talk about all of that on "street signs." now back to sue and tyler on "power lunch." >> mandy, thank you very much. power rundown time. let's get the countdown started on a couple of today's top stories. first up, earnings and economic news lifting the markets, but which one is more important to

investors right now? sue, what say you? earnings or the economy? >> i think earnings. i think earnings if you are an investor, earnings are extremely important. a number of companies also this week, ty, as you well know, raise their dividend. so even if you're a conservative investor and you want to be paid to wait, there are now more companies giving you a higher yield or more bang for your buck if you will. and i think that's important longer term for the retail investor. and i'm not convinced that the retail investor is still back in this market yet. >> i agree with you, sue. i think in the short-term especially earnings and we've seen it this week. earnings are the key. that's what's going to make the stock move until the short-term. in the long-term i don't think you can separate the two. >> i agree. >> the economy is is going to set the stage or pace for corporate earnings over the long-term. that's why people are so worried about what's going on in europe, china and so forth. second, ford in the fast lane. number two automaker beating the street despite weakness in europe. but can the lump sum buyouts to union retirees pretty unprecedented in magnitude help lower those pension obligations

long-term and make for a healthier company? sue. >> you know, i don't know, to tell you the truth, ty. i'm really not sure. i think getting some of those concessions is tough. it has been tough. whether or not it sets the table for longer term profitability, one would think so. and one would hope so. i think one of the bigger issues for ford also and all the automakers is although buying an american car is certainly bag in vogue, which is a great thing, there's still a lot of incentives out there. there's still 0% financing, there's still a lot of reasons for consumers to buy those automobiles other than the automobile itself. >> you know, who knows on this one. i think that's sort of we agree again here, sue. i think you're generally better off paying now and settling an obligation. >> right. >> rather than waiting. but if you wait, you might be paying those obligations in substantially cheaper dollars. that's one to watch. >> that's a very good point. >> number one nfl draft pick, andrew luck heading to the colts after the stanford quarterback

signs a $22 million four-year contract not counting his endorsement contracts. darren rovell will talk about that. these rookies are making a lot of money minting more than a dozen overnight millionaires in the nfl. sue, may have even played it down. >> no, they haven't. it's amazing the money that goes into sports. i don't envy him. he has the burden of replacing payton manning, who not only was a great player and is a great player is a larger than life personality as well. both you and i are rabid football fans, watching the draft last night was great. >> aaron rodgers, of your favorite team, was not drafted until later in the first round. we shall see.

the rookie pay scale. >> thanks for slipping that in, ty. thanks. >> yahoo! filing claims against facebook regarding two additional patents. we're running this story down. these are the news flashes. we will bring you more details on that as it becomes available to us. meantime, let's go to brian shactman for a market flash. >> thank you very much, tyler. take a look at the dow right now. just a little below the key number 13,264.49. that's the 2012 closing high. if we close above it, it would be a four-year high. right now we are one point below it. we were above it just a few minutes ago, sue. >> thank you very much, brian. okay. up next on "power lunch," you do not want to miss this because very few people are going to be able to see it. it is one of the best known and iconic paintings in the history of art. edvard munch's "the scream." it's on the auction block. it could easily fetch $80 million or more. we're going to give you the very first live on the air preview of the painting that could shatter

world records for the most expensive artwork ever sold. and it's only on "power lunch." and it is next. guys. come here, come here. [ telephone ringing ] i'm calling my old dealership. [ man ] may ford. hi, yeah. do you guys have any crossovers that offer better highway fuel economy than the chevy equinox? no, sorry, sir. we don't. oh, well, that's too bad. [ man ] kyle, is that you? [ laughs ] [ man ] still here, kyle.

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welcome back to "power lunch." i'm jon fortt with an update on the patent battle between yahoo! and facebook. yahoo! firing back saying that they have filed two additional patent claims against facebook. let me give you the statement. today yahoo! filed additional claims against facebook in u.s. district court in san jose related to two additional patents. today's filing underscores a breadth of facebook's intellectual property. i'll stop there. yahoo! also says the claims facebook has made against yahoo! ten patent violation claims, are invalid stating that for one, facebook didn't come up with many of these patents itself, and for another, some of the patents relate to features of yahoo!'s products. maybe facebook or someone there was digging under the hood and knew something they didn't know about facebook's plans. this battle will continue long into the future. we saw facebook get some patents from microsoft. we know they got those for battle. >> jon, thank you very much.

sotherby's is set to auction off one of the most iconic images in modern art. "the scream" by edvard munch, who's who of wall street collectors and billionaires have been swinging by sotherby's to check out the goods. in a cnbc "power lunch" broadcast first peek of the paintings. here to tell us more about it is simon from sotherby's. welcome to "power lunch." pleasure to see you again. >> hi, sue. hi, tyler. >> good to see you again. one of the key questions we all had in the newsroom is who do you think is going to buy this? do you think it will be an individual? obviously one of great net worth. or do you think that a museum might want to purchase this? it seems it would be quite a gem for a number of the new museums sprouting up in various parts of the world. >> that's the question, isn't it? i think it's one or the other. my feeling is that we're either going to see a deeply passionate

private individual acquire this work for his own collection, or one of the world's great institutions. one of the things about the scream is it has a genuinely global reach. so i can say to you at this point that it could go just about anywhere in the world. >> is it a risk for the individual to buy it though? because it is so well-known. it's been copied in so many different ways whether you're talking about movies or whether you're talking about products, things like that, it's been copied in so many different ways. do you make yourself a target as an individual by buying this piece of art? >> it's true. "the scream" is repeatedly the most reproduced of all great works from the history of art. and as you say, it's used every day in cartoons and images and all sorts of different ways. also it has the distinction of being the most stolen work of art in art history. two of the versions in norwegian museums were stolen but happily both recovered.

it's certainly among the most iconic images we've ever sold at sotherby's in recent times. >> simon, it looks like it's a rather dm rather dominiontive piece. and there are four works produced by edvard munch. why did he do that? what is different about this particular one? >> well, tyler, one of the fascinating things about the picture while everybody knows it all around the world, relatively few people have actually seen the original work. there are as you say four versions. but the other three are all in museums in oslow. because of the thefts those works are never loaned to exhibitions. apart from the picture behind me, you have to go to oslo to w to see a screen. he came back to it on three occasions in order to get the perfect image. but only one of those is in private hands and could ever be available for purchase. >> what do you focus on when you look at it? one of the things it does i think distinguish this one is

that munch actually enscribed a poem, part of his inspiration for this painting, right on the frame. >> that's right. that's one of the unique facts about this. "the scream" before being a painting is actually a poem. munch talks about this experience in the hills above oslow where the sky turns to blood over the blue black city. the sky turns to blood and tons of fire. it actually takes him a year to turn that poem into a picture. now our version of the four is the only one where he's painted that poem in blood red paint on a black placard, the bottom of the work itself. and it's one of several distinguishing facts about our picture as well as being the only one in its original frame in that way. it's also the most vibrant and immediate and immediately impactful of the four. it has a tremendous energy to these strokes of pastel that is much stronger perhaps than the other versions. >> simon, give me your best guess, one on what you think it will go for?

and two, a lot of these investors, although they are very wealthy, they have an eye towards resale. does resale matter as much in this particular painting because of its iconic nature? >> well, that's a good question. i think experience would suggest and we're lucky enough at sotherby's to handle great masterpieces of modern art from time to time. experience would suggest they are purchased certainly at this level by very passionate people who have an extreme desire to own that unique object. and they're not looking at buying something at this sort of price level with a view to reselling it. they're buying it because they simply can't live without it. as to what price the work could actually achieve, well, we know from sales such as the wonderful bronze of the walking man we saw in london in 2010, but great masterpieces today can make a touch more than $100 million. we're suggesting that we think

the scream could make more than $80 million but only what happens in the auction room on wednesday evening at sotherby's will tell us what the price really is. >> you know, simon, we also know that sotherby's is going to be auctions off part of the estate of teddy forswin. tell us about the collection briefly and how you think that particular auction will go. >> well, we're very, very privileged to be offering the collection of teddy forstman at sotherby's. he bought and sold pictures with us. i think if all collections reflect in some way their collectors, perhaps none that i'm aware of gives you such a vivid insight into the personality of ted di forstmann as the pictures he assembled. it's clear he loved powerful, vibrant, energetic, textured, supremely confident pictures.

he was very intuitive. he didn't think too hard about these things. if he wanted to get a picture, he absolutely pursued it. >> simon, you've got a great job. thanks for sharing with us. we appreciate it. good luck on tuesday. >> it's my pleasure. good afternoon to you. >> still to come, space, no, not the shuttle enterprise flying into new york today. an entrepreneur's new plan to take the space race private. and checking out the dow hitting a 2012 closing high or near it there up 54 points. 13,258 the number right now. over the past year higher by 4.5%. wow. this is new. yep. i'm sending the dancing chicken to every store in the franchise to get the word out. that could work. or you could use every door direct mail from the postal service. it'll help you and all your franchisees find the customers that matter most: the ones in the neighborhood. you print it or find a local partner. great. keep it moving honey. honey? that's my wife. wow. there you go. there you go.

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steve, i want to thank you for being with us this week. hope you come back next week. it's been a blast to have you here to bounce ideas off of. and a new book from steve. it's called "the big win, learning from legends to become a more successful investor" a very worthwhile project. >> thank you. >> we're talking about the 2% economy in the 25 seconds we have left, talk about technology. >> here's my concern in technology. a big microsoft upgrade cycle coming, it's going to be in the fall. so that means a slow down in advance of it. i'd be carefu